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T-bill, T-bond rates likely to drop

RATES OF government securities on offer this week will likely decline on strong demand following the central bank’s liquidity boost.

The Bureau of the Treasury (BTr) will attempt to raise P20 billion via Treasury bills (T-bills) on Monday, broken down into P5 billion each for 91- and 182-day papers and P10 billion for 364-day papers.

On Tuesday, the BTr will auction off P30 billion of reissued two-year Treasury bonds (T-bonds) with a remaining life of one year and nine months.

A bond trader said the T-bills may fetch yields 10-20 basis points (bps) lower than the previous auction, while rates for the two-year bonds could settle between 3.15% and 3.25%.

Meanwhile for another bond trader, rates for the T-bills may decline by 15-20 bps while that for the two-year T-bonds could fall within the 3.1-3.25% range.

At the secondary market on Friday, yields on the three-month and six-month T-bills stood at 3.079% and 3.163%, while the one-year and two-year papers were quoted at 3.295% and 3.308%, respectively.

Last week, the Treasury upsized the volume of T-bills it awarded to P24 billion from its initial P20-billion plan as bids reached P80 billion and yields declined across-the-board.

It also raised another P10 billion in short-term papers via its tap facility.

Broken down, the government raised P7 billion in 91-day papers, more than the initial P5-billion offer, at an average rate of 3.113%, down 35.8 bps from the 3.471% fetched in the April 13 auction.

It also upsized its award of 182-day papers to P7 billion from the P5-billion plan as total tenders reached P21.125 billion. The six-month papers yielded an average rate of 3.239%, lower by 17 bps from 3.409% previously.

For the 364-day papers, the BTr fully awarded P10 billion as planned out of total bids worth P25.864 billion. The average rates for the one-year securities dropped 39 bps to 3.295% from 3.685% previously.

Sought for comment, Robinsons Bank Corp. peso sovereign debt trader Kevin S. Palma said investors will continue to park their funds in government securities following the Bangko Sentral ng Pilipinas’ (BSP) moves to boost liquidity.

“Both of the offerings are expected to be well-received as financial market players continue to put liquidity to work now that the effect of the monetary easing made during this crisis is now in full throttle,” he said in a Viber message on Saturday.

Meanwhile, the first bond trader said demand for the short-term papers will continue to be robust as markets react to effects of relief measures rolled out by governments here and abroad.

The BSP Monetary Board delivered a 50-bp off-cycle cut to bring the key policy rate or the overnight reverse repurchase rate to 2.75%. Following this, rates for the overnight deposit and lending facility have also been trimmed to 3.25% and 2.25%, respectively.

These rates are the lowest on record and also since the BSP shifted to an interest rate corridor in 2016.

The cut came less than a month after the 50-bp reduction fired off last month and the 25-bp cut in February, taking the total policy rate cut delivered this year to 125 bps, completely unwinding the 175 bps in hikes done in 2018.

The BSP also slashed the reserve requirement of universal and commercial banks by 200 bps earlier this month, with analysts projecting another 200-bp cut soon to boost liquidity.

Governments around the globe have unveiled economic stimulus packages to cushion the blow of the coronavirus disease 2019 pandemic.

Back home, the government rolled out a P205-billion direct cash aid program for the 18 million poorest families and a P51-billion wage subsidy program for employees of small businesses, among others.

The Treasury has set a P190-billion local borrowing program for April, broken down into P130 billion in Treasury bills and P60 billion in Treasury bonds. — Beatrice M. Laforga

Palay farmgate price up 4.7% in early April

THE FARMGATE price of palay, or unmilled rice, rose 4.7% week-on-week to P17.48 per kilogram in the first week of April, with prices down 6.5% year-on-year, according to the Philippine Statistics Authority (PSA).

In its weekly update on palay, rice, and corn prices, the PSA said that the average wholesale price of well-milled rice (WMR) rose 2.96% week-on-week to P38.59 while the retail price rose 2.19% to P42.40.

The average wholesale price of regular-milled rice (RMR) rose 2.39% to P34.14 while the average retail price rose 1.35% to P36.86.

The farmgate price of yellow corn grain rose 2.6% week-on-week to P12.23.

The average wholesale price of yellow corn grain rose 7.09% to P23.25 while the average retail price rose 1.55% to P25.50.

The farmgate price of white corn grain rose 8.9% to P15.

The average wholesale price of white corn grain rose 53.09% to P25 while the average retail price rose 13.38% to P30.50. — Revin Mikhael D. Ochave

WFH during the ECQ: KMC Savills’ Cha Carbonell, Gerold Fernando, and Michael McCullough

THE ongoing lockdown in the Philippine capital has prompted many companies to suddenly implement work from home (WFH) programs. But a few companies like real estate services firm KMC Savills had already been allowing some employees to work from home before the imposition of the enhanced community quarantine (ECQ), as long as key performance indicators (KPIs) were achieved.

“We’ve always had the option to do WFH with our sales team as long as they’ve hit their KPIs. Most of them are comfortable with the setup,” Cha Carbonell, KMC Savills executive director for transactions and advisory services, said in an e-mail interview with BusinessWorld.

Thanks to video chat technology, the team continues to hold meetings.

KMC Savills Managing Director Michael McCullough said they use Microsoft Teams for internal meetings and Zoom for client meetings.

“Zoom happens to be a client of ours so we’ve gotta show support,” he said.

Gerold Fernando, KMC Savills executive director for transactions and advisory services, said he’s glad for the extra hours gained from the WFH setup.

“The extra time enabled the team and our employees to complete trainings and online classes to improve in their craft,” Mr. Fernando said.

The KMC Savills discussed what it was like to work from home with BusinessWorld through e-mail interviews which have been lightly edited.

CAN YOU DESCRIBE YOUR HOME OFFICE?
Ms. Carbonell: It’s challenging though if you have kids at home. Overall, it works for us as most of our employees are acclimated with good internet and can work efficiently despite the new distractions of young family members.

Mr. Fernando: My office is virtually any part of the house that my WiFi can reach, as long as I have with me my MS Surface and my phone. I like to move around but for more formal business meetings, I take the call inside a quiet room.

WHAT DOES YOUR WORK DAY LOOK LIKE NOW?
Ms. Carbonell: Most days are office hours but some days I start late since it’s easier to work once it’s quiet. It’s more peaceful with less distractions for more focused work.

Mr. Fernando: The day itself starts at the same time but taking away the commute to the office means you can relax the pace. There is more time to enjoy the morning coffee and even cook breakfast.

ARE YOUR WORK HOURS EVEN MORE FLUID NOW THAN BEFORE?
Ms. Carbonell: We’ve had employees who respond to clients immediately despite time zone difference and we’ve always been flexible with time-zones and adjust it based on our client needs. There’s definitely more time for e-mails, paperwork and updating databases, upgrading processes and looking into how we can be more efficient as a team during the lockdown.

DO YOU HAVE BREAKS AT HOME?
Ms. Carbonell: Whether or not you have kids at home, it’s important to have breaks. In my case not so much watching TV but getting up and addressing domestic issues at home and paying attention to what your kids do. As a parent you don’t want to be physically present but mentally and emotionally absent for eight to nine straight hours a day. Facebook and LinkedIn are sites to visit intermittently throughout the day.

Mr. Fernando: If there is a big gap in between meetings, a few laps in the pool helps clear the mind and prepare for the next. And sometimes I play a quick online game with the kids.

WHAT’S YOUR WFH OUTFIT?
Ms. Carbonell: I put on a jacket, but I am always in my home clothes

Mr. Fernando: I put on comfy clothes — shorts and white T-shirt. Why a white T-shirt? A business shirt is easy to wear on top when you have a video call. Obviously, the shorts are kept since they’re not captured by the camera.

ANY INTERESTING STORIES FROM YOUR EXPERIENCE IN WORKING FROM HOME?
Ms. Carbonell: I am learning how to make face masks. I got a sewing machine. Sometimes I make doll clothes for my girls. It’s a good way for me to disconnect and to keep myself sane during the ECQ. With my group of friends, we’ve started a series of trivia nights through Zoom that keeps all of us entertained.

Mr. Fernando: I’ve learned to cook. Having limited access to restaurants and avoiding food deliveries gave me the motivation to make home cooked meals. I realized it is actually easier, especially when you have access to YouTube recipes.

WHAT IS THE MOST IMPORTANT LESSON YOU HAVE LEARNED FROM WORKING FROM HOME?
Mr. McCullough: Pretty sure the home office will be a future MUST HAVE in residential designs moving forwards. Whether luxury condos or mid-high end townhouses, the home office will be given it’s dedicated and much needed space and privacy.

Ms. Carbonell: Companies in the future will be more flexible with work arrangements of employees. Connectivity, measuring productivity, motivating your team and coming up with fun ways to keep connected and engaged are crucial things to consider in WFH setups. — Cathy Rose A. Garcia

Wilcon provides aid to frontliners

WILCON Depot, Inc. has extended support to healthcare workers by providing protective gear and transportation as the Luzon-wide enhanced community quarantine continues while the country struggles to contain the spread of the coronavirus disease 2019 (COVID-19).

“Through a collaboration with the Project Kaagapay: Protect our Healthcare Heroes, Wilcon has donated 16,000 personal protective equipment (PPE) and 60,000 face masks through GoNegosyo,” the home improvement and construction supply retailer said in a statement.

“The medical equipment will be distributed to different hospitals across Metro Manila that will help the brave frontline workers in minimizing the risk of exposure from the deadly virus,” it added.

Wilcon said that as the quarantine put on hold public vehicles, it donated bicycles through Go Negosyo to allow frontline workers to travel to get to work.

“The efforts of the company has already helped thousands of Filipino families and frontline workers with the initial donation of 20 million pesos to support ABS-CBN Lingkod Kapamilya Foundation and GMA Kapuso Foundation in their programs to help provide basic medical supplies for the health and safety workers as well as supply food and basic needs to poor families whose source of living has been affected by the enhanced community quarantine,” it said.

Yields on gov’t debt fall

YIELDS ON government securities (GS) fell last week as investors continued to digest the Bangko Sentral ng Pilipinas’ (BSP) off-cycle half-percentage-point interest rate cut.

Bond yields, which move opposite to prices, went down by an average of 15.4 basis points (bps) on a week on week basis, according to PHP Bloomberg Valuation Service Reference Rates as of April 24 published on the Philippine Dealing System’s website.

“Local yields declined amid the lingering impact of the recent off-cycle 50-bp policy rate cut from the BSP,” a bond trader said in an e-mail response.

The trader added that GS yields fell due to anticipation of weaker inflationary pressures on the back of sharp declines in international oil prices last week.

Separately, ATRAM Trust Corp. Head of Fixed Income Jose Miguel B. Liboro said the fall in GS yields last week was the third consecutive week since the sell-off seen in March, with the latest interest rate cut from the central bank as the most recent catalyst.

“Broadly, you saw a flattening of the yield curve with yields on longer-tenor securities adjusting the most,” Mr. Liboro said in an e-mail.

The BSP cut policy rates by 50 bps in an off-cycle meeting on April 16 to prod lending activity to the economy in the middle of coronavirus disease 2019 (COVID-19) crisis. It also canceled the scheduled policy meeting on May 21.

These adjustments brought the overnight reverse repurchase rate to 2.75%, as well as the central bank’s overnight deposit and lending rates to 2.25% and 3.25%, respectively.

These rates are the lowest on record and since the BSP shifted to an interest rate corridor in 2016.

The central bank has so far slashed the interest rates by a total of 125 bps this year after the 75 bps in cuts seen in 2019. The latest move completely loosened up the 175 bps hike implemented in 2018 to arrest rising inflation.

Meanwhile, for the first time in history, US oil crude futures sank below $0 per barrel last week due to supply glut brought about by the COVID-19 pandemic.

At the secondary market, GS yields fell nearly across-the-board at the close of trading last Friday. The three-month, six-month and one-year papers went down by 15.7 bps, 22.7 bps, and 21.8 bps, respectively, to 3.079%, 3.163%, and 3.295%.

At the belly, yields on the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) fell by 26.9 bps (to 3.308%), 24 bps (3.371%), 21 bps (3.428%), 18.8 bps (3.488%), and 19.4 bps (3.611%).

Meanwhile, yields at the long end of the curve were mixed as 10-year T-bond decreased by 15.2 bps to 3.763%, while 20- and 25-year debt rose by 5.7 bps and 10.8 bps, respectively, to 4.502% and 4.618%.

For this week’s trading, the bond trader said: “Yields are likely to decline further amid likely steep decline in first-quarter economic growth reports in the United States and Eurozone.”

The trader said the market will also take its cue from the decisions of central banks in the US, Europe, and Japan this week.

“We continue to remain constructive on the prospects for Philippine bonds but given the very solid run we’ve had over the last three weeks, we believe that momentum on the rally could stall for now amid some profit-taking,” Mr. Liboro said.

“Potential supply on long-tenor issuances as the BTr (Bureau of the Treasury) is set to announce its new issuance schedule may prompt investors to lock in some gains in the short-term,” he added. — Lourdes O. Pilar

BFAR bans harvest of juvenile mangrove crabs, spiny lobsters

THE BUREAU of Fisheries and Aquatic Resources (BFAR) said it has banned the harvest of juvenile mangrove crabs and spiny lobsters to prevent overfishing and implemented a registration system for fishermen harvesting these resources.

In two separate fisheries administrative orders, the BFAR sought to regulate the trade in the two species, and required members of this fishery, including growers and collectors, to be registered with and certified by their local governments.

“The catching of their juveniles and fry are intended for aquaculture seed stock that will be cultured for grow-out and harvested for food. Others, at the very minimum, are harvested for research purposes,” BFAR Information Officer Nazario C. Briguera said in an e-mail.

The transport of mangrove crabs and spiny lobsters is also subject to a transport permitting process.

The Fisheries and Aquatic Resources Management Council is also required to maintain a registry of gatherers, consolidators, traders, and growers of mangrove crabs and spiny lobsters.

Mr. Briguera added that the guidelines are authorized by Section 104 of Republic Act 8550 as amended by RA 10654 or the Amended Fisheries Code.

Section 104 of the Amended Fisheries Code lays down penalties for the export of breeders, spawners, eggs, or fry.

“The guidelines were also to address the concerns of various stakeholders including our fisherfolk for the sustainable utilization of these high-value species (e.g. the observed drop in our lobster production in the past few years),” Mr. Briguera said.

The guidelines will be enforced by the BFAR’s Fisheries Law Enforcement Group at the regional and provincial level, as well as the individual local government units. — Revin Mikhael D. Ochave

Does auto industry unemployment loom in a post-ECQ economy?

Life after lockdown will look anything but normal

AS THE enhanced community quarantine (ECQ) has been extended to May 15, many of us doubtless continue to get progressively antsy, anxious, and basically worried for what’s ahead. Make no mistake about it: The nefarious coronavirus is out there, and it’s waiting to pounce on the careless and those mistaking its invisibility for absence. Even if thousands of people have recovered around the world, the immutable truth is that COVID-19 kills, and neither the dreaded SARS nor H1N1 holds a candle to its transmission rate. That damned virus loves to strike us down.

Truly, before a vaccine is developed and is readily available, we’re playing the microbial Russian roulette every time we go out there. Still, many will contend that it’s not that simplistic a call; that our economy is already hemorrhaging badly, and once the unemployment numbers and the damage to businesses large and small have been crunched, it may be already an impossibly big hole to climb out of.

PHILIPPINE AUTOMOTIVE DEALERS ASSOCIATION’S REQUEST
On April 16, the Philippine Automotive Dealers Association (PADA), which represents some 200 car dealerships across the country, penned a letter to Department of Trade and Industry (DTI) Secretary Ramon M. Lopez. This basically encapsulated the concerns of the sector obviously reeling from the business standstill. PADA appealed to be allowed to “operate on (skeleton) work force basis on or before 20 April 2020.” Copies of the letter, signed by PADA President Willy Tee Ten and the association’s directors, were also furnished Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) President Atty. Rommel Gutierrez and Association of Vehicle Importers and Distributors, Inc. (AVID) President Ma. Fe Perez-Agudo.

While cognizant of what it calls the “COVID-19 crisis” and agreeing with the wisdom of the enhanced community quarantine, PADA brought to light the negative impact on the auto industry that it said “accounts for 4% of GDP (per Board of Investments in 2011).” PADA also rued: “As our industry is highly capital-intensive, the implications of a total lockdown are severe. Companies like us rely on frequent refinancing of funds sourced from our operations. Currently, we are facing a very challenging situation. Without new revenues, we are afraid that some of us will face significant liquidity problems in the short to medium term. Availability of cash vary across the sector, but several companies from our industry will definitely face shortages within a matter of weeks.”

It additionally lamented that the “biggest chunk… of expenses (is composed of) commercial rents and unfortunately… Memorandum Circular no. 20-12 series of 2020 issued by the Department of Trade and Industry considered (it) as (a) large enterprise hence disqualification to avail of the concessions on… commercial rents.”

So, what is PADA asking for? With the skeleton work force (50% of service reporting on rotation basis) it is planning to call to duty, it wants to “ensure that private (vehicles) are maintained and (are) readily available for use in emergency situations and purchasing essential needs” by providing “after-sales services on a ‘by appointment’ and ‘limited’ engagement only.”

Mindful to convey that it is “not (PADA’s) intention to question your wisdom nor the laws as such is not the underlying objective of the protection of the general populace,” the association promises to abide by ECQ measures to help curb the spread of the pandemic by:

• Ensuring that technicians perform tasks one work bay apart for physical distancing;

• Maintaining “strict sanitation” through the use of disinfectants on “high-traffic customer areas,” the “application of protective material (on) the vehicle including seating and steering wheel cover;

• Making the service team and technicians use disposable gloves and proper protective gear;

• Wiping the interior and exterior of serviced vehicles with disinfectants;

• Requiring customers to wear a mask and screen them for body temperature. They will also be provided hand sanitizers, and all reception areas will be screened off by a “clear plastic divider between the customers and service advisors.”

The PADA correspondence continued: “Essential service will strictly follow the guidelines of the IATF (The Inter-Agency Task Force for the Management of Emerging Infectious Diseases) on safety distancing requirements, PPE for workers including but not limited to means of private transport (designated pickup points), thermal guns, company identification cards, work permits, and other requirements and safety measures for employees and clients.”

But last April 22, Sec. Lopez turned down the request, calling attention to the directive of the IATF against emerging infection diseases and the DTI’s own Memorandum Circular 20-08 which pertain to the “permitted manufacturing of basic food and essential products and its related value chain” and nothing more. “Unfortunately, the list does not include the automotive sector. This is mainly due to the urgent need to limit the movement of people and to stop the spread of COVID-19, which is the essence of having the ECQ. Thus, if there would be exemptions, it must be limited to these very essential products that the people cannot live without.”

Nonetheless, we can glean two obvious things from the PADA letter: the auto industry is reeling, but it knows there needs to be sweeping changes in the way it does business to thrive in the time of the pandemic.

SHORING UP TRUST
To the credit of many auto companies (and fuel firms), they have stepped up during the ECQ — offering free rides, discounts, 24/7 emergency roadside assistance, even personal protective equipment (PPE) and other supplies to either customers or frontliners.

Granted, these are good deeds per se, but there is also some strategic benefit to the generosity, selflessness, and charity. These go into the intangible but very real goodwill piggybank.

And these strange days are also a time for something else. “This is the time people will remember the data mining, the customer relations, the Christmas greetings, the Valentines greetings to customers, all the customer service efforts that seemed nothing the past few years. These will reap loyalty as people will still service their vehicle from dealers they trust, and that dealers who have shown a relationship with them when everyone was busy selling,” said a multi-brand dealer principal who requested to remain anonymous.

NEW SHOWROOM NORMAL
Beyond the short-term plea of PADA, you could count on change once the metropolis opens up shop — whenever that will be. Our resource said you can probably expect the following changes in dealerships/casas in keeping with social/physical distancing measures to curb the spread of COVID-19.

1. Service by appointment. Say goodbye to walk-in servicing. You’ll probably have to book ahead for your PMS appointment or other requirements.

2. Payment via online gateways. The traditional transaction with money and with a cashier may have to be forgone in this new touch-free age.

3. Goodbye to showroom visits and mall displays.

4. More 1S (sales only) showrooms will be opened to bring brands closer to people. But again, visitor traffic will be managed.

5. Test drive by appointment. Just before the ECQ was implemented, Glenn Tann, deputy chairman and managing director of Tan Chong International Ltd. (which owns the Motor Image Group of Companies, Subaru’s regional distributor), said that they were looking at the possibility of bringing cars to potential clients for test drives. Another option is to call ahead and arrange for one in advance with your choice dealer.

Do we have cause to worry about car parts and such, given that the global supply chain has been disrupted? The answer is no — at least for now. “We follow a strict distributor inventory policy,” he maintained. So there should be no shortage in the parts bin for common consumables like those used during PMS visits.

WHAT ABOUT JOBS?
I asked a difficult question that we’re almost too scared to contemplate now. Will auto organizations have to downsize amid this new normal? Our dealership principal replied, “We dealers are big borrowers from banks, and we rely heavily on loans versus inventory. The only way we can sustain employees is for banks to cut our commercial loan interests by 50% or more.” He projected employee attrition of 20% to 30%, even up to 50%, in dealerships.

Government programs are looking at rescuing SMEs, but not all car businesses are owned by big conglomerates, he insisted. “They forgot about us,” lamented the executive. “And now we’ll have a new problem: unemployment.”

Make no mistake, however. Like PADA, the dealer principal said he agrees with the implementation of ECQ, even as he admitted it’s doing a lot of damage to businesses.

While the “Bayanihan to Heal as One” Act (RA 11469) is buying people time, our respondent reminded that it ends after the ECQ. “People’s amortizations, credit card bills, and other payables will pile up. Remember, it’s not a free ride; RA 11469 moved the due date. But if the Bangko Sentral ng Pilipinas/Department of Finance will subsidize interests, then that might save us.

“Government should see the unemployment impact — not only in auto but in, say, mall retail stores as well. They are heavy borrowers too, and they’re more pitiful as they rely on walk-ins,” he continued.

“The heart says we pay our employees, but the sustainability, with us being large borrowers, says we will have to choose the banks.”

How COVID-19 will change the way restaurants run

WE already know and feel how the current pandemic has changed the way we work, cough, or even show love. A recent webinar by Enderun Extension showed that the pandemic might affect even the way we eat, from the speakers’ recommendations on how restaurants will have to change in order to face a world during, and after a pandemic.

Titled “Food Safety, Hygiene and Sanitation, Rebooting Your Food Business During COVID-19,” Cheong Yan See, Culinary Head of Enderun Colleges said, “It’s no longer enough for us to operate way we used to before.”

Meanwhile, Dr. Wessam Atif, founder of FoodSHAP (Safety and Hygiene Academy of the Philippines) pointed out that although the COVID-19 virus is not transmitted through food, “This does not mean that it is not related to food in one way or another.”

“Most of the flus, and similar pandemics in the past 100 years or so, were related to food in a very important way, but maybe in an indirect manner.” He noted that the process by which viruses reach humans is through animals we consume for meat: the viruses begin in wild animals, which transmit them to domestic animals, and then on to humans. To emphasize the point, he brought up the 2011 film Contagion, about a pandemic (the film, though fictional, is solidly based on science). The ending shows how the virus was first spread by a bat who had entered a pigpen. A piglet from the pen is then handled by a chef in a Macau casino, who then shakes hands with Gwyneth Paltrow’s character — who then becomes Patient Zero. Dr. Atif points out the crucial step missed out during this whole sequence: the chef did not wash his hands. If he had, the movie would have ended there.

Glenn dela Cruz, a food safety management system practitioner and a microbiologist said, “The good news is, our advice about food safety and COVID-19 pandemic are just the same.” Both speakers emphasized the importance of washing one’s hands. Dr. Atif recalls a World Health Organization (WHO) project he participated in, which included a field assessment of public markets in the Philippines. “One of the major issues I wanted to focus on was the presence of many live animals in the market, as well as hand washing,” he said. “I remember that there was not a single handwashing station in the market that we visited, which is a serious concern.”

“This means that our first concern should focus on hygiene and proper veterinary procedures in farms and primary production.” For this he recommends more careful vetting of food sources and suppliers. He also emphasizes the health of staff members: “If you have any workers or members of staff who are showing sickness, they should not work, and that is also the basic food safety training anywhere you go. This is not only the case for COVID-19 but we have many diseases in the region, like tuberculosis and measles.”

Mr. Dela Cruz gave the following recommendations: clean and complete uniforms must be worn at all times within the workplace, but not outside it — uniforms might be infected with a virus during transit to and from the workplace. Food should not be allowed out at room temperature for more than two hours, and the same goes for cutlery and plates at restaurants (restaurant goers are used to seeing plates and cutlery sitting out on tables, waiting for us). He also recommends frequent sanitation of all utensils with approved chemicals. As for his points about handwashing, he said that many kitchen staff provide the following reasons as to why they neglect to wash their hands: either they weren’t given the training, or there are no facilities for handwashing: this should include soap, running water with a temperature of at least 38 degrees celsius, paper towels, and nail brushes.

Dr. Atif has a case against raw food during a pandemic. “When you have raw ingredients like in sashimi — when you receive it, there has to be good handling, and you have to prepare it, sanitize it, and send it out. It’s just that it’s so susceptible to contamination because it was not heat-treated.”

“The virus dies if treated with heat above 56 degrees Celsius. I highly discourage you to put raw items in the menu. Concentrate on the cooked items.”

This goes as well in the kitchen. He recalls students asking him why they have to wear gloves in handling raw food, when they’re about to be cooked anyway, thus killing any microbes. “I’m not worried about the food as much as I’m worried about your own safety as a food handler,” he said.

“I really want us to be careful, as a lifestyle. Not only because of COVID-19. This pandemic would end, like all other pandemics end. You wake up one day, and there will no longer be any cases. But we need to change our lifestyle and culture, in preparation for the next pandemic.

“If a virus finds a clean and sanitized environment, this is not friendly for the virus.” — Joseph L. Garcia

No collection of toll fees at C5 flyover crossing SLEx — TRB

THE Cavitex Infra Corp. (CIC) and the Philippine Reclamation Authority (PRA) have jointly filed a motion for the extension of their provisional authority to collect toll fees at the C5 Southlink Expressway (C5 flyover crossing SLEx), the Toll Regulatory Board (TRB) said.

“The TRB wishes to inform motorists that there will be no collection of toll fees at C5 Southlink Expressway (C5 flyover crossing SLEx) starting…24 April 2020, following the expiration of CAVITex’s provisional authority to collect,” the TRB said in an advisory released by the Department of Transportation over the weekend.

It added: “Motion for Extension of Authority filed by the Cavitex Infra Corp. (CIC) and Philippine Reclamation Authority (PRA) on 23 April 2020 is ongoing processing and resolution.”

The C5 South Link Expressway is a 7.7-kilometer six-lane project of the Manila-Cavite Toll Expressway (CAVITEx), connecting Circumferential Road 5 (C5) to CAVITEx via Merville and Sucat in Parañaque City. The first two kilometers of the expressway project connecting the C5 road to Merville was opened to motorists in July last year.

The CIC has said that it was targeting to open the whole C5 South Link alignment this year. Once completed, the project is seen to reduce traffic to 30 minutes from the usual one hour.

CIC is part of Metro Pacific Tollways Corp., the tollways unit of Metro Pacific Investments Corp. (MPIC).

MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Peso expected to weaken on volatile oil prices

THE PESO may weaken this week amid continued volatility in global oil prices due to the coronavirus disease 2019 (COVID-19).

The local unit finished trading at P50.84 per dollar on Friday, shedding 17 centavos from its P50.67 close on Thursday, according to data from the Bankers Association of the Philippines.

Despite this, the currency was still up 10 centavos week-on-week compared to its P50.90 finish on April 17.

Analysts said the weaker peso came amid risk-off sentiment after the announcement of the extension of the enhanced community quarantine (ECQ).

“The peso exchange rate closed weaker after the two-week extension of the lockdown in Metro Manila and other high-risk areas which could further reduce economic activities,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion also attributed the depreciation of the local unit to the lockdown’s extension, with the market expecting this to affect the economy.

“Although some parts of the country has been placed on a lower containment grade called general community quarantine, 86.2% of the economy is still expected to be under a stricter quarantine,” he said in a text message.

The recommendation of the Inter-Agency Task Force for the Management of Emerging Infectious Diseases to extend ECQ in some high risk areas was approved by President Rodrigo R. Duterte last week.

For this week, Mr. Ricafort said market sentiment will continue to be affected by trends in global oil prices.

The pandemic has taken its toll on global oil demand which has dropped by 30% since early March because of the virus.

Meanwhile, Mr. Asuncion expects the peso to maintain its relative strength this week on the back of the country’s strong dollar reserves.

“The peso has been resilient even amid the COVID-19 pandemic… This may be due to the strong external position years even before the pandemic,” he said.

In a statement on Saturday, Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno attributed the peso’s continued resilience amid the pandemic to its “hefty” gross international reserves” and “strong economic fundamentals”.

“[T]he peso remains steady. It is the second strongest currency (next to Japan) among 14 monitored Asian foreign currencies after the COVID-19 pandemic,” Mr. Diokno told reporters in a Viber message on Saturday.

For this week, Mr. Ricafort gave a forecast range of P50.65 to P51, while Mr. Asuncion sees the peso moving around the P50.70 to P51 levels. — L.W.T. Noble with Reuters

Stocks to move sideways on earnings, Fed meet

STOCKS are seen to move sideways this week as investors take cues from company earnings, guidance reports and possible monetary stimulus abroad in light of the ongoing coronavirus disease 2019 (COVID-19) pandemic.

The benchmark Philippine Stock Exchange index (PSEi) lost 134.57 points or 2.4% to close at 5,464.98 on Friday. This resulted in an end to the PSEi’s four-week streak of posting increases as it recorded a 5.6% decline last week.

Value turnover came in slower with a 34.4% drop to an average of P5.02 billion. Foreign money still flowed out of the local bourse, but net selling was halved to an average of P617.95 million from P1.24 billion the week prior.

“Sentiment took a hit from negative pricing on crude futures due to concerns over weak demand and rising supply, as well as the extension of the enhanced community quarantine (ECQ) at home from April 30 to May 15,” online brokerage 2TradeAsia.com said in a market note.

The price of oil in United States dropped to below $0 per barrel at the start of last week, resulting in losses in global equities over worries on its possible impact on economies that rely on oil.

The ECQ was also extended for another two weeks in selected areas after April 30, fueling concerns on how businesses can recover following this halt.

Heading into this week, Timson Securities, Inc. Trader Darren T. Pangan said the market may “go sideways as long as the 5,000 support level holds.”

“The sideways trend may help the market gain strength to eventually retest the 6,000 resistance area. Investors are carefully assessing the market as corporate earnings and management guidance reports continue to be released in the coming weeks,” he said in a text message Sunday.

This trading week be cut to four days as the market is closed on May 1 in observance of Labor Day.

2TradeAsia.com said investors will continue weighing how companies will react to the extension of ECQ in Metro Manila, Central Luzon, Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) and other areas across Luzon, Visayas and Mindanao. It noted other areas that are considered “low-risk” and “moderate risk” will be downgraded to a general community quarantine, which may result in gradual reopening of businesses.

“The soonest the mass testing procedure takes place, the higher the chances in getting the local economy restarted on a ‘new normal’ mode. As the restart process is extended, however, the economic dent is bound to affect firms’ financial performance, but it is not too late to recover these dents so long as the restart process is firmly supported with no further disruptions or relapses,” it said.

Aside from local activities, 2TradeAsia.com said investors will keep watch of the meeting of the US Federal Open Market Committee this week, which is expected to result in more monetary easing. “If another rate cut is supported, this would likely ripple into similar actions in the region,” it said.

The brokerage is putting immediate support for the PSEi within 5,200 to 5,300 and resistance within 5,600 to 5,650. — Denise A. Valdez

Hungry Venezuela’s crops rot in fields for lack of fuel

LA GRITA, VENEZUELA — With millions of people hungry in Venezuela, acute fuel shortages are forcing farmers to let crops rot in fields or feed them to livestock since they cannot transport food to market during the coronavirus quarantine.

Irrigation systems are halted in the western Andean highlands and laborers cannot get to fields for harvest. The fuel shortages have worsened in recent weeks as Washington has tightened sanctions on the socialist government of President Nicolas Maduro.

Even before the coronavirus crisis, some 9 million Venezuelans already were suffering from malnutrition, according to the UN World Food Programme, and the latest developments may make it increasingly difficult to keep the country in quarantine.

“I gave the lettuce to the cattle because it’s lost,” said Angel Mora, 55, a farmer in the agricultural hub of La Grita. “It makes me sad because this is our daily bread. We have to provide for our children and grandchildren.”

The 500 trucks that typically leave La Grita each week are now halted by quarantine and fuel shortages, leaving nearly 5,000 tonnes of food per week stranded in the highlands, said Robert Maldonado, who represents the region’s farmers.

The land around La Grita, a city of some 100,000 inhabitants near the border with Colombia, has for decades been a center of Venezuela’s fresh vegetable production.

Some growers simply leave crops in fields. Others sell goods at discounts to neighbors or donate them to churches that provide food for the poor, who have long struggled to feed themselves due to years of hyperinflation.

There are no official figures on how much food is being lost. The information ministry and state oil company PDVSA did not respond to requests for comment on food spoilage and fuel shortages.

Venezuela, which has reported 311 cases of coronavirus and 10 deaths, ordered a strict quarantine in March to prevent the spread of the disease.

“This is what humanitarian activists hoped to never see: a sanitary crisis on top of a nutritional crisis,” wrote Venezuelan nutrition expert Susana Raffalli on Twitter. “It hits us as the country does not have gasoline, protective equipment or a clear response to COVID-19.”

VULNERABLE TO CORONAVIRUS
The United Nations has described Venezuela as one of the world’s most vulnerable nations to the disease due to its deteriorated health system and lack of running water and soap to maintain basic hygiene.

The OPEC country’s decrepit refineries are in near collapse and the US State Department has pressured companies not to sell gasoline to Venezuela, according to sources, creating long lines at service stations around the country.

Maduro blames the fuel shortages and the economic problems on US sanctions.

Venezuela’s heavy fuel subsidies have made it so cheap that drivers rarely bother paying for it when they fill up at PDVSA service stations.

But fuel on the black market now fetches upwards of $4 per liter ($15.72 per gallon), which farmers say would leave their shipping costs greater than the value of the merchandise.

Many find themselves stuck waiting in fuel lines with trucks full of fruits and vegetables that become damaged after hours under the hot sun.

Nelson Romero, 30, had to plow under an entire field of $11,000 worth of carrots because they had gone bad.

“This harvest was supposed to go to market, but for lack of gasoline there was no way to move it,” he said.

Some desperate potato growers in the nearby state of Merida have returned to their ancestral roots, loading oxen with sacks and walking them to market, said Gerson Pabon of the country’s potato growers association.

Around 50,000 tons of plantain — a crucial element of the Venezuelan diet — are at risk in the western Zulia state, according industry leaders.

Zulia’s once-powerful dairy and cattle farmers are also facing potential losses, worsened by chronic blackouts that limit refrigeration.

Some have banded together to rent trucks to transport products to Maracaibo, Zulia’s capital and Venezuela’s second city. Others pool resources to buy fuel for transport.

On a small plot of land 15 minutes outside La Grita, 38-year-old Azael Duque on a Saturday morning was cutting up 2,000 celery plants whose leaves were wilting after too much time in the ground — meaning buyers would not accept them.

“It’s the first time I’ve lost a harvest because there’s no gasoline to transport it,” said Duque, swinging a machete at the damaged celery. “We’re worried, because there’s going to reach a point when we can’t sow, we can’t work.” — Reuters

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